PARADISE VALLEY, AZ-A little more than 48 hours after Whitestone REIT executives announced the intention to acquire retail properties in the Phoenix market, the Houston-based company closed on 125,898-square-foot Paradise Plaza. The purchase price was $16.3 million, or $129 per square foot.
According to a press release describing the transaction, the purchase price for the asset at 4848 E. Cactus Rd. was a 30% discount to estimated replacement cost. The acquisition involved assumption of a $9.1 million mortgage loan, with the balance paid in cash.
“Paradise Plaza is well located in a high barrier to entry trade area serving the affluent neighborhoods of Paradise Valley, Phoenix and Scottsdale on Cactus Road near North Tatum Boulevard," says Whitestone chairman and CEO James C. Mastandrea in a press release. "Paradise Plaza is solidly positioned as a kid-friendly destination with 19 primarily small space service-based tenants that drive traffic into the center." A value-add component, including a build-out for Paradise Pediatrics, is currently in progress; additional construction includes a playground. “We are also evaluating a rental-based covered parking feature as an additional value-add component at Paradise Plaza, as well as for several of our other Arizona properties, where covered parking comes at a premium,” Mastandrea adds.
During Whitestone REIT's Aug. 6 earnings conference call, Mastandrea and CFO David Holeman indicated more buys in the Phoenix area, with two more retail assets anticipated to close during the next quarter.
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